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Assignment 6 A Saved Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent
Assignment 6 A Saved Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: $ 30 points Sales Variable expenses Contribution margin Fixed expenses Net operating income (los) 1,572,000 576,800 995, 200 1,095,000 199,800) $ cBook In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Hint Division Central $620,000 Sales Variable expenses as a percentage of sales Traceable fixed expenses East $432,000 55+ $273,000 $520,000 398 $201,000 $325,000 Print Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the belief that it would increase that division's sales by 12%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? References Complete this question by entering your answers in the tabs below. Req 1 Req 2A Reg 2B Prepare a contribution format income statement segmented by divisions. Division Central Total Company East West
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